In recent months, the Polish economy has grown to become one of Eastern Europe’s fastest-growing frontier markets, thanks to prudent fiscal policies. But the Polish president’s death in a plane crash this weekend could have negative implications for the country’s exchange traded funds (ETFs).
Polish President Lech Kaczynski and dozens of others in a high-level delegation were killed Saturday when their plane crashed on landing outside the western Russian city of Smolensk. Many are wondering if the country can weather the loss of such leadership. Kaczynski was a popular leader. [5 ETFs to Ride Eastern Europe’s Growth.]
Gregory White and Marcin Sobczyk for The Wall Street Journal report that the speaker of the Sejm, Poland’s lower house of Parliament, becomes the interim head of state in case of the death of the president. According to Polish law, early elections will be called within two weeks and they must take place within two months from the date of that announcement. [Riding the Polish Juggernaut with This ETF.]
So far today, investors seem optimistic about Poland’s will to survive in the wake of tragedy. The Market Vectors Poland (NYSEArca: PLND) ETF was up nearly 1.7% at midday. This country has survived worse and the Polish people are resilient.